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Slovakia VAT: A Comprehensive Guide

January 3, 2023

VAT is one of Slovakia's most important taxes. It is a tax applied at varying rates on the sale of goods and services.

Locally known as Daň z pridanej hodnoty (DPH), the Slovakia VAT was first introduced in 1993. Currently, the country's Ministry of Finance manages and administers the system. Act No. 222/2004 (VAT Act) and Act No. 563/2009 make up most of Slovakia's VAT legislative framework.

Taxable people with a permanent residence, place of business, or VAT establishment in Slovakia must register for value-added tax if their annual gross receipts exceed EUR 49,790. Registration may also be completed voluntarily. A VAT applicant in Slovakia is required to notify the Tax Office of any bank accounts that will be utilized in connection with the VAT application process.

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When Do You Register for VAT?

Before starting any business activities, your company must register with the Slovak authorities for VAT registration. If the application for registration is filed late, fines may apply.

Do You Need to Register?

 

Following the Slovakia Value-Added-Tax Act, which was last updated in 2019, the following taxpayers must register for VAT in Slovakia:

  • Taxable people and organizations with a place of residence or management on the country's territory and a minimum turnover of 49,790 euros during 12 consecutive months

  • Businesses and individuals subject to taxation who have not yet met the registration threshold but who voluntarily want to register

  • Companies registered in other countries that undertake VAT-taxable activities in Slovakia

  • Foreign firms operating via branch offices that fulfill VAT-payable delivery of goods and services

  • Business conglomerates in Slovakia may register for VAT if they meet specific requirements.

 

For Value Added Tax, the following transactions qualify for VAT registration:

 

  • The exchange of money for products or services provided locally by a taxable person

  • Intentional purchase of commodities inside the community (intra-community) by a taxable person

  • Items being brought in from abroad or importation

  • If the input tax is deductible, the taxpayer may keep the proceeds from selling products or services provided locally for its own use or that of its employees.

  • When a taxpayer moves their own products from the Czech Republic to another EU country (or vice versa) for commercial reasons, the move is considered a cross-border transfer of goods.

  • If the input tax is deductible, the use of a taxpayer's physical assets for personal or employee benefit, the supply of free commodities, or the supply of goods for a purpose unrelated to the taxpayer's business.

If a taxable entity's annual revenue is more than EUR 49,790 and has a seat, place of business, or permanent establishment in SK, it must register for VAT. Until the 20th of the month following the month the threshold was passed, such firms must file a registration form.

Foreign Entities

Before beginning any taxable activity in Slovakia, a non-established firm must register for VAT.

Registration as a non-resident allows foreign enterprises to avoid setting up shops in Slovakia solely to pay value-added tax. 

For foreign firms already registered for Value Added Tax in their home countries conducting business in Slovakia, the threshold for registering for VAT in Slovakia is set at zero. 

However, businesses must submit a Slovakia VAT number request to the relevant agency 30 days after the first taxable supply. This is also true when non-community businesses provide goods to the community.

VAT registration is required for online sales to clients in Slovakia if the annual sales total is more than €35,000. This threshold applies to enterprises with EU VAT registrations that provide goods to customers in Slovakia over the internet.

Following is a list of the required paperwork to be filled out and sent to the Slovakian tax office, together with the relevant supporting documents:

  • a valid VAT registration certificate from another EU country, if necessary;

  • a notarized or court-stamped translation into Slovak of an excerpt from the company's national trade registration;

  • passport of the business' representative

Businesses that aren't based in Slovakia must register with the country's tax authorities in Bratislava before engaging in any revenue-generating activities.

Slovakia's VAT registration is a prerequisite for business and collecting VAT from clients. It must file its VAT returns on time and per Slovakia's rules.

 

More taxable persons established in Slovakia (i.e., with a seat, place of business, or VAT establishment in Slovakia) can create a VAT group if certain conditions are met.

A VAT registration obligation in Slovakia arises for foreign persons (taxable persons without a seat or VAT establishment in Slovakia) before commencing activities subject to Slovak VAT, where they could be liable to pay Slovak VAT, except for the import of goods. There is a list of supplies that foreign taxable persons can perform in Slovakia without a need to register for Slovak VAT, including mainly:

  • Supplies subject to VAT reverse-charge

  • Supplies subject to triangulation simplification performed by the first customer in a chain

  • Intra-Community supplies of imported goods if represented by a tax representative

  • VAT-exempt transport and supplementary services related to export and import

  • VAT-exempt supplies without credit entitlement

  • Distance sales to non-taxable individuals using the OSS scheme

This list, among others, comprises local supplies of goods and specific services to taxable persons based in Slovakia, as such supplies are entitled to the local VAT reverse-charge mechanism (i.e., the person responsible for paying VAT on such supplies are the customer).

Foreign taxable persons registered for Slovak VAT are not qualified to deduct input VAT via the Slovak VAT return if such input VAT associates only to supplies subject to VAT reverse charge. Foreign businesses can claim Slovak information VAT via the VAT refund procedure, provided they satisfy the stipulated conditions. Suppose the foreign VAT payer entitled to a complete VAT refund via a specific EU VAT refund application acquires goods in Slovakia from EU countries. In that case, its acquisition of goods in Slovakia from another member state is considered VAT-exempt.

Foreign taxable persons may perform the following transactions in Slovakia without registering for Slovak VAT:

  • Supplies that are susceptible to a VAT reverse-charge

  • The first client in a chain is responsible for call-off stock simplification

  • Intra-Community sales of imported products if a tax agent is present.

  • Transport and ancillary services connected to export and import that are free from VAT.

  • Supplies exempt from VAT without credit entitlement.

  • Sales at a distance to a nontaxable individual utilizing the OSS system.

What are Slovakia's VAT Rates?

The standard rate of 20% applies to the provision of goods or services that do not qualify for a lower VAT rate. The lower rate of 10% applies to specific categories of products and services (certain types of food, drugs, medical equipment, books, and newspapers). The much lower rate of 0% is applied to international passenger transport.

 

Are there exemptions available? Yes, these exemptions apply to the supply of commodities in the EU, international passenger transport, the export of goods from the EU, financial and insurance services, and real estate supply.

When Should You File the VAT Returns?

 

Monthly or, in certain situations, foreign businesses must make quarterly calculations and payments for recurring VAT returns and payments.

 

Monthly

Taxpayers must file appropriate VAT returns every 25th day of the month after the applicable periods. If the deadline falls on a weekend or under a federal holiday, the taxpayer must submit the VAT return by the following business day.

 

Quarterly

For new VAT registrations, a monthly periodicity is required. If more than a year has passed since the taxpayer's VAT registration and the taxpayer's annual turnover did not exceed €100,000 in the preceding 12 calendar months, the taxpayer may switch from monthly to the quarterly filing.

How to Register for Slovakia VAT

Although it is not required to secure a representative in Slovakia, many companies prefer to use the service of experts to help expedite their interactions with the local tax authorities. The proxy holder will also help handle tax requirements on their behalf. In this circumstance, a bank guarantee is unnecessary. The corporation continues to bear the entire responsibility for paying its VAT arrears.

 

Contact us for a free consultation if you want help registering for Italian VAT or are unsure whether you are required to register.

 

Before we begin the registration process, you must gather the following documents:

  • VAT registration forms are filled out or completed in the local language.

  • A copy of the organization's bylaws

  • An extract or copy of the trade registration

  • A certificate indicating VAT taxable status

  • Power of attorney (if using a fiscal agent)

  • Evidence of activities in Slovakia, such as a contract, order form, etc.

 

The Slovak tax authorities may request the translation of specific papers into Slovak. If your file is complete, the competent Slovak tax office will issue your VAT number within one month.

 

Get to know more about Slovakia's VAT registration process by contacting Safari Star. 

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